Phone wont let me introduce pass code

[mbopy22]

Hi

I was just using my phone on a wifi network, I was in the middle of a search in google maps, when the phone just froze, so I pressed the lock button, then press it again, and since my phone has the password option activated, I get the numbers, and the 4 boxes, now when I press the numbers I get the clicking sound but the boxes above don´t get filled in, so the phone does not unlock
I still get signal, I even got a text sms message.

WHAT should I do? restore it? I don´t know how, I just got this phone last tuesday. Also iTunes is telling me that there is a newer version, 2.1 software? what should I do with it?

ANY HELP please!

 

[mbopy22]

Solved

I just reset my iPhone it now works fine again. I did not know that pressing the central button and the block it resets as an iPod.

Fixed... wooooouuffff

Either way, question, should or should I not update to 2.1